Subgame Consistent Cooperative Solution of Stochastic Dynamic Game of Public Goods Provision

Authors

  • David W.K. Yeung Hong Kong Shue Yan University; Saint Petersburg State University
  • Leon A. Petrosyan Saint Petersburg State University

Abstract

The provision of public goods constitutes a classic case of market failure which calls for cooperative optimization. However, cooperation cannot be sustainable unless there is guarantee that the agreed-upon optimality principle can be maintained throughout the planning duration. This paper derives subgame consistent cooperative solutions for public goods provision by asymmetric agents with transferable payoffs in a stochastic discrete-time dynamic game framework. This is the first time that dynamic cooperative game in public goods provision is analysed

Keywords:

Public goods, stochastic dynamic games, dynamic cooperation, subgame consistency

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References

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Published

2022-08-09

How to Cite

W.K. Yeung, D., & A. Petrosyan, L. (2022). Subgame Consistent Cooperative Solution of Stochastic Dynamic Game of Public Goods Provision. Contributions to Game Theory and Management, 7. Retrieved from https://gametheory.spbu.ru/article/view/13626

Issue

Vol. 7 (2014)

Section

Articles

License

Articles of "Contributions to Game Theory and Management" are open access distributed under the terms of the License Agreement with Saint Petersburg State University, which permits to the authors unrestricted distribution and self-archiving free of charge.